Hong Kong, March 20 (BNA): Bitcoin hovered near a nine-month high, capping its best week in four years as turmoil in traditional banking prompted some investors to turn to digital assets.
The largest cryptocurrency by market cap fell 1.8% in Asia to $27,549 after hitting its highest since June 12 on Sunday at $28,474, according to Reuters.
It rose 26% last week and has risen more than 35% in ten days as turmoil in the banking sector spreads around the world.
Starting with the Silicon Valley bank meltdown and culminating so far with UBS taking over Credit Suisse at a discount over the weekend.
The momentum is entirely liquid-driven, with bitcoin as an alternative liquidity tool, said Marcus Thelson, head of research and strategy at Singapore-based digital asset financial services firm Matrixport.
He expects bitcoin to reach $45,000 by the end of the year, as liquidity from central banks finds its way into crypto assets, just as it did during 2021, when bitcoin soared to record highs.
The US Federal Reserve said on Sunday that it and other major central banks will deepen liquidity by increasing the pace of dollar supply operations in financial markets.
Ether, the second-largest cryptocurrency, rose to a seven-month high of $1,846.50 on Sunday and was last seen at $1,768.
NAA